Le Saux, who is straight, claims that the action led Beckham to call him a "[bleep]ing poof."
"That shocked me. That this was somebody who is obviously not homophobic makes it even more significant," the New York Post quoted Le Saux, as saying.
"I'm sure it does not cross David's mind to talk like that in, say, Elton John's company, but as a reaction to an incident, I was fair game to be called a 'poof,'" he added.
The allegation comes as Le Saux's autobiography, "Graeme Le Saux: Left Field," is about to hit stores.
However, a rep for Beckham, now with the Los Angeles Galaxy, called the claim "completely untrue."
"David would never say such a thing. It's been seven years since this match that Graeme refers to, and he has never mentioned this to David personally or publicly," the rep said.